Borrow Funds from Bank

Terms: 10-Year Loan at 10% Interest for $500,000 $797,904.00 Monthly Cost: $6,607 Total Cost (Total Interest: $297,904):

Terms: 5-Year Loan at 10% Interest for $500,000 $637,411.00 Monthly Cost: $10,623 Total Cost (Total Interest: $137,411):

Pay from Profits (34% Tax Bracket)

Terms: $100,000 Per Year for Five Years $757,575.00 Total Cost to Remaining Partner:

$50,000 Per Year for 10 Years $757,575.00 Annual Cost Per Year to Business: $75,757 Total Cost to Remaining Partner:

Fund Buy-Sell with Disability Buy-Sell Insurance

$500,000 Lump Sum Benefit after 12-Month Waiting Period (Assume 40-Year-Old Professional Executive) $76,625.00 Cost Per Year: $2,905.00 Total Cost through Age 65: